Hopefully, your business will be fortunate enough never to encounter an adverse incident. However there are many advantages in planning to support your business goals and arranging adequate insurance protection, but why should you invest in a Business Continuity Plan?
Achieve Tangible Competitive Advantage
With over 40% of larger businesses now vendor checking before engaging suppliers, having a BCP consistent with BS 25999 or ISO 22301 gives you a competitive edge. Customers need assurances that their supply chain will not let them down, and a supplier with a BCP is an obvious choice over a competitor who poses a risk by not having planning in place.
Position Yourself to Tender for Publicly Funded and Higher Value Contracts
Since the introduction of the Civil Contingencies Act in 2004, all publicly funded work has required that suppliers have a Business Continuity Plan, which has narrowed the choice of suppliers available to the public sector. Having a BCP pre-qualifies SMEs and allows them to compete on more equal terms.
Create opportunities to reduce your insurance premiums
According to AIRMIC (Association of Insurance & Risk Managers) – BCP is seen by insurers as a means to improve the quality of the business they underwrite and that BCP helps organisations mitigate impact, recover faster, minimise losses and thus reduce premiums.
Improve your credit rating and become more attractive to investors and purchasers
Standard & Poor’s incorporates consideration of the strength of risk management practices as a critical component of its corporate credit ratings methodology. Having a BCP increases your credit rating and presents a better overall picture to investors, shareholders and banks.
Improve your business efficiency and reduce costs
A BCP audit looks at what functions, systems and facilities are vital to the continuation of your business, allowing you to identify what is surplus to requirements and focus on more efficient work practices. In practice, these improvements pay for the cost of the plan itself.
There are several products available on the market to take you through Business Continuity Planning; not all are the same. Quality counts and perceived value is individual. Your BCP should be fully invocable at the time of the interruption.
Inspire confidence in your staff
Fear of an uncertain future is a fundamental human concern. By being able to demonstrate built-in resilience visibly, you can assure those upon whom you most depend on your long-term reliability.
Comply with regulation and safeguard Director’s liabilities
Being a Director is a complex and challenging role. In addition to the task of maintaining a profitable business, today’s directors are faced with frequently changing responsibilities and regulation. Having a BCP helps to reduce a director’s unlimited personal liability significantly.
Ensure the Survival Capability of Your Business
The primary role of a BCP is to protect a business by preparing and planning for potential denial of access to vital business resources. According to AXA, 80% of companies affected by a major incident close within 18 months.
Minimize lost revenue and downtime
In the event of a crisis, the ability to achieve business as usual with minimal downtime will be a crucial factor in minimising the financial impact on your business.
Insurance will cover the replacement of lost and damaged assets, however, consider the impact on your business of the loss of productivity, inability to quote for new business or fulfil existing customer orders. Having a BCP in place means that you can minimise downtime and return to trading quicker.
Preserve your business reputation
In the event of an incident having a clear plan of action can help prevent damage to your reputation. Having a BCP enhances a company’s reputation before, during and after a crisis.